Everyone knows that getting a lower interest rate on your mortgage can save you thousands of dollars over time, but what you may not know is that the best rates are not necessarily offered by the big volume players or the bank where you currently do your checking. Instead, they can often be found at smaller banks and credit unions.
“Neglecting to include smaller community banks and credit unions could prove to be a costly admission," says Greg McBride, senior financial analyst with Bankrate.com of the loan-hunting process.
“In this market, in particular with jumbo large or jumbo confirming loans, smaller community banks and credit unions are very competitive,” says McBride.
Compared to large banks, which are more depended on the secondary market, small banks have more flexibility to offer lower rate loans because “they are not dependent on an investor in the second market to eventually buy it,” he said.
